The Importance of market structure Flashcards
What is a Homogenous product?
an identical product
what market structures have homogenous products?
perfect and monopolistic competition.
What is product differentiation?
when one product is different to another
What markets have product differentiation?
oligopoly, monopoly, duopoly,
What is a monopoly?
A market that only has one firm offering that good/service
E.G Thames water
What is a duopoly?
A market that only has two firms offering that good/service
What is an oligopoly?
A market that only has a few firms offering that good/service.
E.G supermarkets, phone industry
What is monopolistic competition?
A market that has many firms offering that good/service.
E.G restaurants
What is perfect competition?
A market that has an unlimited number of firms offering a good/services.
E.G not real, only a theory
How many barriers to entry does each of the markets have?
Monopoly: a lot,
Duopoly: a lot,
Oligopoly: a bit,
Monopolistic competition: barely any,
Perfect competition: none,
